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The Orwell store of Gabriel's Corner, a chain of small neighborhood convenience stores, has a Kaizen (continuous improvement) approach to budgeting monthly activity costs for

image text in transcribed The Orwell store of Gabriel's Corner, a chain of small neighborhood convenience stores, has a Kaizen (continuous improvement) approach to budgeting monthly activity costs for each month of 2021. Gabriel's Corner has three product categories: soft drinks ( 35% of cost of goods sold [COGS]), fresh snacks (25\% of COGS), and packaged food (40\% of COGS). The following table shows the four activities that consume indirect resources at the Orwell store, the cost drivers and their rates, and the cost-driver amount budgetec to be consumed by each activity in January 2021 (Click the icon to view the four activities and their cost data.) (Click the icon to view additional cost driver information.) Read the requirements. Requirement 1. What are the total budgeted costs for each activity and the total budgeted indirect cost for March 2021? Begin by calculating the budgeted cost-driver rates for February, then calculate March. (Round your answers to five decimal places, X.XXXXXX.) More info Each successive month, the budgeted cost-driver rate decreases by 0.1% relative to the preceding month. So, for example, February's budgeted cost-driver rate is 0.999 times January's budgeted cost-driver rate, and March's budgeted cost-driver rate is 0.999 times the budgeted February rate. Gabriel's Comer assumes that the budgeted amount of cost-driver usage remains the same each month. Requirements 1. What are the total budgeted costs for each activity and the total budgeted indirect cost for March 2021 ? 2. What are the benefits of using a Kaizen approach to budgeting? What are the limitations of this approach, and how might Gabriel's Comer management overcome them? Data table

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